What happened: 3M (MMM) stock jumped more than 6% in premarket trading on Tuesday after the industrial conglomerate beat Wall Street's earnings expectations and raised its full-year guidance.
What's behind the move: For the second quarter, 3M reported adjusted earnings of $2.40 per share, well above the $2.25 expected by analysts. Adjusted operating margins improved to 24.9%, a sign of strong execution as the company's multiyear turnaround, which began in 2024, gains traction.
Looking ahead, 3M now expects adjusted earnings of $8.80 to $8.95 per share in 2026, up from its previous forecast of up to $8.70 and ahead of analysts' expectations of $8.74.
What else you need to know: While 3M is known for products like Post-it Notes and Scotch Tape, the company has increasingly positioned itself as a materials technology supplier of growing industries such as electronics, advanced manufacturing, aerospace, and artificial intelligence infrastructure.
In the company's earnings release, it highlighted software giant Microsoft (MSFT) as the first hyperscaler to deploy its Expanded Beam Optics technology for AI data centers.
3M also announced a long-term agreement with Airbus (AIR.PA) to supply advanced insulation technologies for the A220 aircraft.
In addition, its communication headsets were used by crew members on NASA's Artemis II mission, highlighting the company's presence in next-generation space exploration.
3M's turnaround comes after years of challenges, including PFAS-related liabilities tied to so-called forever chemicals and its 2024 spin-off of its healthcare business, Solventum.
Year to date, 3M's shares are flat.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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